Elliott Investment Management’s offering includes a mix of cash and credit. It is subject to the resolution of claims by holders of Venezuelan bonds in default who claim the same assets.
The investor Elliott Investment Management was named this Friday, September 27, as the presumed winner in the judicial auction taking place in the United States of a parent company of the Citgo Petroleum oil refinery owned by Venezuela.
The group’s offer has a business value of up to 7,286 million dollars in Citgo, review the agency Reuters.
A US district court in Delaware is auctioning shares of PDV Holding, the parent company of Citgo, to pay up to $21.3 billion in claims against Venezuela and Petróleos de Venezuela (Pdvsa) for expropriations and non-payment of debt.
A second and final round of bidding closed earlier this year, leading to negotiations over terms.
Elliott’s offer includes a combination of cash and credit. It is subject to the resolution of claims by defaulting Venezuelan bondholders claiming the same assets, the court said.
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U.S. judicial official Robert Pincus said he chose Elliott unit Amber Energy as the successful bidder, but added that “the buyer may choose to terminate the proposed purchase agreement” if a proposed motion to block the parallel lawsuits by the parties fails. bondholders.
If Elliott withdraws its proposal, Pincus could consider other offers. The judge in the case, Leonard Stark, has not yet given the green light to the offer.
Elliott submitted bids in both rounds of bidding, competing with those from US oil refiner CVR Energy, miner Gold Reserve. Last week Gold Reserve abandoned the tender citing delays and uncertainty in the process.
Elliott’s $7.286 billion valuation of Citgo is nearly identical to the highest bid received in the first round of bidding, which Citgo’s lawyers called disappointing. The refining company was valued between $11 billion and $13 billion as part of the judicial process.
About Crystallex
The ad hoc board of directors of PDVSA reported that this Friday, September 27, the attorney, within the judicial process Crystallex versus Venezuela, presented his offeror recommendation on the sale ordered by the Delaware District Court of 100% of the shares of PDVH.
«According to what was reported, the offeror made a conditional offer subject to multiple pending issues both inside and outside of the judicial process. Therefore, this action does not represent the end of the road nor the definitive closure of this process,” indicated the ad hoc PDVSA administrative board in a statement.
The company pointed out that they had to be clear in conveying to the public that PDVSA still retains ownership over its subsidiary companies in the United States and that they have legal mechanisms and opportunities to safeguard their interests.
«It is necessary to point out that this situation is a direct legacy of the expropriations and impacts as a consequence of the irresponsible management of the Hugo Chávez and Nicolás Maduro regimes, whose debt management and financial commitments have endangered Venezuela’s strategic assets. and PDVSA,” added the oil company.
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